Buying Opportunity Amylin

Buying Opportunity Amylin

This morning Amylin Pharmaceuticals (NASDAQ:AMLN) announced unaudited net product sales for Byetta® for the quarter ended June 30, 2006 were $98.6 million, far surpassing consensus Street estimates of $87.8 million. These strong sales numbers are somewhat surprising given the temporary supply issues with the cartridges for Byetta pens, which caused the company to dampen demand for the product. Lehman Brothers promptly downgraded the stock on the news which has caused the stock to sell off. In early trading today shares have fallen nearly 6%.

It should be noted the company quarterly update will be this Monday at 5 pm EST.

Diabetic Investor understands the sell off as shares of Amylin have risen dramatically since Byetta’s approval. We also see this as perfect buying opportunity. Amylin is by far the most valuable property in the diabetes sector. The cartridge issue is temporary and should be solved shortly. The fact that Byetta sales remained strong during this period shows the strength of this product. Sales of Amylin’s other approved product Symlin are also doing well and the company’s pipeline is strong.

The fact that Lehman downgraded the stock is an example of the Street underestimating Amylin’s strength and this isn’t the first time. Some may recall how the stock sold off after Byetta received FDA approval. All we heard was negative; the drug was an injectable, nausea, etc. At the time Diabetic Investor publicly stated the sell off was unwarranted and Amylin was a great buy. With the stock up over 100% over the past year looks like Diabetic Investor was right on the money. Take your pick believe the Street and sell or believe Diabetic Investor and buy. Not sure but based on our respective track records with Amylin, Diabetic Investor has been right from the beginning.

David Kliff
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